Crypto HK's Statement on Recent Virtual Currency Exchange Controversies

As one of Hong Kong's leading blockchain and virtual currency service providers, Crypto HK has always been committed to the long-term development of the industry and the protection of public interests. In fact, we have repeatedly proposed regulatory suggestions for over-the-counter virtual currency platforms. This includes our submissions during the Securities and Futures Commission's consultation on virtual asset trading platforms, where we advocated for a distinct licensing approach to regulate the industry.

Over the past 12 months, we have diligently and pragmatically worked to prevent suspected fraudulent activities, with the following figures:

Cases of Suspected Fraudulent Transactions Denied: Over 500 instances

Assistance in Police Investigations: Over 10 cases

Support for Suspected Fraud Victims and Referrals to the Police: Over 50 cases

Warnings Issued Regarding Suspicious Platforms, Wallets, or Transactions: An estimated average of 10 times daily

In some instances, our refusal to process virtual currency transactions to suspected fraudsters has led to verbal abuse and even physical violence against our staff. Some aggrieved parties have even accused us of hindering their potential wealth. We have also collaborated with relevant departments, including the police, to distribute anti-fraud booklets, aiming to heighten the vigilance of blockchain service users against potential scams.

We consistently encourage blockchain service users to adopt a learning-first approach before investing. Furthermore, we remind the public that investments in this domain carry a high level of risk, and one should be prepared for the possibility of losing their entire principal. Furthermore, as the cryptocurrency landscape continues to evolve, it's imperative that both novice and seasoned investors stay abreast of the latest developments. The volatile nature of the market, combined with the intricacies of blockchain technology, necessitates a continuous learning approach.

Crypto HK recognises the importance of this and is committed to fostering a culture of education within the community. We believe that informed decisions, backed by a solid understanding of the underlying technology and market dynamics, are the cornerstone of safe and successful investments. We urge all stakeholders, from regulatory bodies to other industry players, to join us in this endeavour. By prioritising education, we can collectively ensure a more transparent, secure, and prosperous future for the cryptocurrency sector in Hong Kong and beyond.